One Person Company (OPC Registration)

Registration or Incorporation of a company without including a second person.

  • Sole Proprietors can avail the benefits of limited liability, without including a second person to form a company.

  • No minimum Capital Required.

  • Protect your Personal Assets.

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Startup @ Rs. 10,000/- (all inclusive)

OPC Registration

One Person Company – The Government of India introduced the One Person Company or OPC concept which is way much better option than sole proprietorship for the budding entrepreneurs. OPC gives entrepreneur complete control over the company and at the same time it reduces the liability. If you wish to explore this option and are willing to understand how to establish One Person Company, read further.

Features of One Person Company (OPC)

As mentioned above One Person Company is the hybrid of Sole Proprietorship and Company form of business. Here are the features of the OPC:

  1. It only has one person as shareholder or member.
  2. A shareholder shall nominate someone else as a shareholder who will take his position in case of death or incapacity of the shareholder.
  3. It can have 1 to a maximum of 15 directors.
  4. OPC can either be a company limited by share or company limited by guarantee or it can also be an unlimited company.

Minimum Requirements, terms and restrictions to establish

  1. It shall have only 1 shareholder
  2. Minimum 1 director mandatory
  3. The director and the shareholder can be the same person
  4. The shareholder shall nominate some else as shareholder
  5. There is no minimum capital requirement to establish One Person Company.
  6. OPC has to be suffixed with the name of the OPC to identify it as One Person Company.
  7. Only an Indian resident or an Indian citizen is eligible to incorporate OPC and can become a nominee of the OPC.
  8. An OPC cannot be converted or incorporates under Sec-8 of the Act.
  9. An OPC cannot carry out Non-Banking Financial Activities.
  10. An OPC cannot convert into any kind of company until its 2 years have expired from the date of its incorporation of OPC, the only exception to this case is when the annual turnover exceeds Rs.2 crores or its threshold limit exceeds 50 lac.

Steps to incorporate OPC

  1. Get the DSC or Digital Signature Certificate for the director(s)
  2. Get the DIN or Director Identification Number
  3. Choose the name of the company and apply for the same at Ministry of Corporate Affairs
  4. Drafting of MOA (Memorandum of association) and Article of Association (AOA)
  5. Sign all the documents and submit wit with the ROC or Registrar of Company.
  6. Make the fee payment to the Ministry of Corporate Affairs and pay the stamp duty as well.
  7. Documents are screened by the ROC or Register of Company
  8. Receipt of the certificate of incorporation

Advantages of One Person Company Registration

Limited Liability Protection

Directors and shareholder are not responsible to pay the debts of the company from their personal assets even if the company is declared insolvent. It has the words ‘OPC Private Limited’ as part of its name.

Never ending characteristic

Ever if the Shareholder or Directors go away from the company, “One person company” continues its existence.

Name of the Company is protected

After “Registering One Person Company” with the registrar of companies, the name of the company gets protected. Registrar of companies will not accept registration of another company, which is similar, identical or resembling with an existing name.

Separate Entity

A company being a legal person is distinct from its directors and shareholder. Creditors of the company cannot claim the debt, from the property of Directors and Shareholder.

Single person can start a company

An “One Person Company” can be incorporated by only one person as Individual.

No Criteria of minimum paid up capital

No minimum capital is required to start an "One person company".

Common Questions

Yes, a single Individual can Incorporate a One Person Company.
No, only a natural person can be a member/shareholder in a One Person Company.
No, only a natural person who is an Indian citizen and resident in India can hold share in One Person Company.
No, to use word “(OPC) Private Limited” in a company name, it must be registered with the Registrar of Companies.
Minimum One Director is required to Incorporate a One Person Company.
No, only Individual person can become a Director in a One Person Company.
No, there should be atleast one Indian Resident Director in a One Person Company.
Resident in India means any person who has stayed in India for a total period of not less than 182 days in the previous financial year.
There is no minimum Capital required to Incorporate a One Person Company.
A company shall need Capital to run a business, and therefore it can increase its capital in future according to the requirement of business.
Yes, there must be a nominee, nominated by sole member of One Person Company during Incorporation and the nominee shall also be a natural person who is an Indian citizen and resident in India.

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